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Earlier editions: 2020-112018-112026-09

DIVISION 4. GENERAL PROVISIONS 3274-9566›PART 6. WORKS OF IMPROVEMENT 8000-9566›TITLE 2. PRIVATE WORKS OF IMPROVEMENT 8160-8851›CHAPTER 5. Stop Payment Notice 8500-8560›ARTICLE 3. Stop Payment Notice to Construction Lender 8530-8538

§ 8536

California Civil Code · 2026-10 edition · updated 2026-10-04 · California

(a) Except as provided in subdivision (b), on receipt of a stop payment notice a construction lender shall withhold from the borrower or other person to whom the lender or the owner is obligated to make payments or advancement out of the construction fund sufficient funds to pay the claim stated in the notice.

(b) The construction lender may, at its option, elect not to withhold funds in any of the following circumstances:

(1) The stop payment notice is unbonded.

(2) The stop payment notice is given by a claimant other than a direct contractor, and a payment bond is recorded before the lender is given any stop payment notice.

(Added by Stats. 2010, Ch. 697, Sec. 20. (SB 189) Effective January 1, 2011. Operative July 1, 2012, by Sec. 105 of Ch. 697 and by Section 8052.)

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California Civil Code

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